Mc Donald's in India

• 1996- First restaurant opens in India, in New Delhi.• JV between Mc D (USA) and 2 Indian

Businessmen- Amit Jatia (Hardcastle Restaurants Pvt. Ltd., Mumbai) and Vikram Bakshi (Connaught Plaza Restaurants Pvt. Ltd., Delhi)

• Management Teams trained extensively in Indonesia & The USA.

• Menu customised according to Indian Tastes and Preferences.

• Vision – To be the best & leading fast food providers around the

globe.• Mission– To be the world’s best quick service restaurant

experience.

• ValuesSummarised as Q, S, C & V.

– Quality– Service– Cleanliness– Value

Supply Chain Management

• Collaboration with Indian businesses, to get highest quality products.

• Better infrastructures and facilities created to satisfy Mc D’s high demands.

• Distributions centres (DC) were created to serve the restaurants.

• DC’s are responsible for – Procurement– Quality inspection– Inventory management– Timely deliveries– Data collection, recording and reporting.

Geographically Dispersed Suppliers: Ensuring stringent Quality

Suppliers• Trikaya Agriculture: Suppliers of Iceberg

Lettuce

• Vista Processed Foods Pvt. Ltd.: Supplier of chicken and vegetable range of products

• Dynamix Diary: Supplier cheese

• Amrit Food: Supplier of long life UHT Milk and Milk Products for Frozen Desserts

Distribution• Radhakrishna Foodland– Distribution centres and Cold storages

• Completely dedicated distribution and supply chain.• Matching supplier production with deliveries using

ERP.• Quality inspection program, quality check at 20

different points in supply chain.• HACCP (Hazard analysis critical control points) food

safety standards emphasizing prevention of faults.

• Contractual Vertical Marketing System– Franchisee organisations

• Functions of channel members–Potato Farming in Gujarat– Ensure freshness, crispness, and nutritional– value of vegetables and processed

products

Mc Donald’s - Vertical Marketing system

Channel Cooperation and Conflict Management

• Channel Cooperation occurs when channel members are brought together to advance goals of the channel as opposed to their own potentially incompatible goals.

• Channel conflict is generated when one channel member’s action prevent another channel from achieving its goals.

Managing Channel Conflict

• Various Mechanisms of managing conflicts are:– Adoption of superordinate goal– Exchange of employees– Joint memberships in Trade Association– Co-option– Diplomacy, Mediation or Arbitration– Legal Recourse

Profitability AnalysisMcDonald’s return on capital employed stands at 9%, 23% less than Diageo’s and 11% less than that of the Yum Brands.

McD Diageo

Sales per Employee £9,774 -£233,405

Profits per Employee £1,106 -£45,791

McDonalds is quite efficient at using its assets to generate profit.

THIRD PARTY LOGISTICS (3PL)

McDonald's provides an excellent example of outsourcing as a business

practice.

McDonald's focuses on its core competencies

Radhakrishna Foodland Private Limited 1993

RFPL - Distribution Centres

Specially designed trucks (refrigerated vans)

DC to McDonald's outlets on a daily basis

Drivers were instructed specifically

McDonald's introduced Foodland to F. J. Walkers of Australia

New systems were adopted to satisfy McD demands

DC is responsible for • Procurement• quality inspection programme• Storage• inventory management• deliveries to the restaurants• data collection• Recording• reporting.

In most cost- effective

manner

Managing logistics for McDonald's is as complicated and demanding as rocket science. - Director, RFPL

McDonald's terminated the technical support from F. J.

Foodland became a members of McDonald's Asia Pacific Logistics and Distribution Team

Thank you